Business
Posted: 4 years ago

Regulator Imposes Third Fine on Caucasus Online

The Georgian National Communications Commission (GNCC) has fined Caucasus Online for the third time. The amount of the fine is the same: GEL270,000. The reason: sales of a 49% stake without the GNCC consent.

Over the past 10 months, the GNCC has been taking vain efforts to make the company restore the initial positions of stakes.

The new deadline for returning the stake is the 20th of September. If the company keeps ignoring the regulator’s requirements, the GNCC plans to apply all other legal mechanisms.

On the whole, since October 17, 2019, the regulator has imposed 6 sanctions on the company and the total amount of fines is GEL 930,000.

The issue is of secrete sales of 49% stake of Caucasus Online. Not having notified the regulator, the 100% stakeholder Khvicha Makatsaria has sold a 49% stake to Azerbaijani businessman Nassib Hassanov.

Caucasus Online owns underwater optical-fiber intent cable and supplies wholesale internet to Georgia and other countries of the Region. Part of the experts asserts that the sales of the 49% stake pose threat to the national interests of Georgia.